A Commercial General Liability (CGL) policy combines several liability coverages to protect your business from various liability exposures unless specifically excluded. This coverage includes protection against financial liabilities arising from public, professional, product, completed operations, premises and operations, elevators, and independent contractor liabilities. CGL policies can operate on a claims-made or occurrence basis.

Key Benefits

  • Bodily Injury Liability: Protects your business if injuries are caused to another person as a result of your operations.
  • Property Damage Liability: Covers damages to another party’s property caused by your business activities.
  • Personal Injury Liability: Safeguards your business against offenses such as wrongful entry, false arrest, and slander.
  • Advertising Injury Liability: Covers your business in case of legal liabilities arising from copyright violations or other offenses by your marketing team.
  • Contractual and Tenant’s Liability: Protects your rented business space from liabilities arising from lease contracts.
  • Lawsuits, Investigations, and Settlements: If you are sued or face damages claims, the policy covers investigation, attorney fees, and medical expenses for injuries.
  • Financial Loss Coverage: Ensures your business can recover without incurring significant financial losses. This policy protects against unexpected costs and secures the future of your business.

Coverage

The Commercial General Liability (CGL) policy offers comprehensive protection with broad coverage. It includes:

  • Coverage A: Bodily Injury and Property Damage Liability
  • Coverage B: Personal and Advertising Injury Liability
  • Coverage C: Medical Expenses

Supplementary Expenses
This coverage includes:

  • All legal expenses, such as defense counsel fees
  • Bail bond costs related to bodily injury liability coverage
  • Reasonable expenses incurred by the insured for investigation or defense, as requested by the insurer
  • Court expenses imposed on the insured
  • Prejudgment interest awarded against the insured concerning judgments that the insurer satisfies

Add-On Covers
The policy also offers additional coverage options, including:

  • Products-Completed Operations Hazard
  • Fire Damage – INR 10 Lacs EEL
  • Travel for Executives (Non-Manual work, Worldwide) – INR 20 Lacs to INR 1 Crore
  • Swimming Pool Extension (subject to a certified lifeguard and supervisor)
  • Health Club, Beauty Parlor, Hotel Shops, Discotheques, Massage Parlors, Restaurants, Bars, Ayurvedic Centers (subject to certified/qualified professionals)
  • Car Park & Automobile Liability – INR 25 Lacs to INR 2.50 Crore
  • Pollution, AOG Perils & Lift Extension, including Escalators
  • Food & Beverage Extension
  • Cross Liability
  • Valuables under Care, Custody, and Control – INR 50 Lacs to INR 1 Crore
  • Terrorism Extension – INR 10 Crores or the policy limit, whichever is lower
  • Liquor Liability – INR 20 Lacs to INR 1 Crore
  • Incidental Medical Malpractice Coverage – INR 20 Lacs to INR 1 Crore
  • Additional Insured Extension
  • Non-owned/Hired Automobile Liability – USD 1 Million or higher, whichever is applicable

Exclusions

The following are excluded from the policy:

  • Product Recall
  • Professional Liability/Errors & Omissions
  • Employer’s Liability
  • War and Allied Perils
  • Liability arising from Aircraft, Hovercraft, Watercraft, or Automobiles
  • Contractual Liability
  • Liability under Workmen’s Compensation Act or similar laws
  • Expected or intended injury
  • Damage to Alienated Premises
  • Damage to Owned Property
  • Nuclear Energy Risks
  • Directors & Officers Exclusion
  • Internet Liability
  • Auto Coverage for Events/Promotions
  • Tenants Legal Liability
  • Aqua Sports and Hazardous Sports

Claim Process

In the event of a loss, the following actions must be taken immediately:

  1. Notify the insurer of the occurrence of the loss, providing a detailed written statement of the claim, including the nature and extent of the loss, as well as an estimated value of the damage. Any delay in notifying the insurer could jeopardize the claim, as it may result in the insurer being unable to accept liability for the loss or damage.
  2. Take all necessary steps to reduce and minimize the extent of the loss, damage, and liability.
  3. Identify the proximate cause of the loss, assess its type and extent, and determine whether it falls within the scope of the policy coverage.
  4. Fully cooperate with the insurer and the appointed surveyor during the survey process to ensure a proper assessment of the loss.
  5. Provide all records and proof as requested by the surveyor or insurer to assess the extent of the loss and determine liability under the policy.
  6. Submit required documents, such as the claim form, copy of the policy, demand letter, incident report, etc.
  7. Clearly identify the subject matter insured.